Minimal Impact On Your Credit Score

Cancelling the card will reduce the amount of “credit” you are using, but everything you’ve done on the card in the past year still remains on your “credit profile” and hence actually closing the account probably won’t have any impact on your credit rating.

Even if it does, the impact will be so minute that it won’t affect any future lending decisions. Therefore, if you think that keeping the credit card open will cost you more in fees compared to what you’ll earn in cashback, then close it down.

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Lovely comments

If I have a no fee card, I like to leave the account open and just lock-away or shred the card. This let’s me still have a larger “total credit” line without the hassle of having to call into cancel or any effect on my FICO.